The global semiconductor IP market is estimated to grow from USD 5.58 billion in 2022 to USD 7.74 billion by 2028 at a CAGR of 5.72% during the forecast period.

What is Semiconductor IP?

Semiconductor IP is a reusable unit of a logic, cell, or chip layout design. It is generally developed to be leased out to various vendors as a foundational component for various chip designs & sophisticated devices. SIP is pre-verified and usually has a license fee attached to its usage. SIPs are most commonly used for processors, interconnects, peripherals, and memory drives.

Key Players in the Semiconductor IP Market

• Faraday Technology Corporation (Taiwan)
• Fujitsu Ltd (Japan)
• Mindtree Limited (India)
• ARM Ltd (SoftBank) (UK)
• Synopsys Inc. (US)
• Cadence Design Systems Inc. (US)
• CEVA Inc. (US)
• Andes Technology Corporation (Taiwan)
• MediaTek Inc. (Taiwan)
• Digital Media Professionals (Japan)

Recent Merger & Acquisitions

• On 14 August 2023, Intel and Synopsys formed a strategic partnership to develop intellectual property for Intel 3 and 18A process nodes, a significant move for Intel Foundry Services (IFS), a potential semiconductor foundry for advanced integrated circuits. This agreement is not exclusive, benefiting IFS as customers often require IP from multiple vendors.
• On 29 July 2023, the Centre for Development of Advanced Computing (CDAC) partnered with Arm, a global leading semiconductor IP company, to expand support under the Design Linked Incentive Scheme (DLI) and boost semiconductor market growth in India. The Arm® Flexible Access for Startups program now accepts applications from startups qualifying under MEITY's SemiconIndia future design DLI scheme.

Market Dynamics

The global semiconductor IP market is driven by a host of factors, such as:

• Increasing adoption of connected devices for daily use as well as a rise in the demand for electronics from the healthcare industry amid the COVID-19 pandemic along with the surging need for teleconference instruments.
• Growing demand for consumer electronics particularly in emerging markets of China and India.
• Due to the growing trend of outsourcing semiconductor design, fabless semiconductor companies are seeing a rise in demand for semiconductor IP.
• The increasing requirement for high-performance, low-power semiconductors across a wide range of applications, including smartphones, tablets, laptops, and servers.
• The rising popularity of advanced technologies such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT), necessitate the use of specialized semiconductor IP.

Regional Analysis

The Asia Pacific semiconductor IP market held the highest market share in 2022 and is projected to grow at a healthy CAGR in the coming years. This is majorly ascribed to the presence of domestic players, strong presence of semiconductor and consumer electronics manufacturers, growing use of smart devices, surging, and robust demand for smart wearables, laptops, and smartphones, etc., further bolsters the regional market growth during the review period.

Conclusion

The semiconductor IP market is expected to grow significantly in the coming years, driven by the increasing demand for connected devices, consumer electronics, and advanced technologies such as AI, ML, and IoT. The Asia Pacific region is expected to remain the dominant market for semiconductor IP, owing to the presence of domestic players, strong presence of semiconductor and consumer electronics manufacturers, and growing use of smart devices.

Overall, the semiconductor IP market is poised for robust growth in the coming years, driven by the increasing demand for innovative and sophisticated electronic devices.